Results of Wednesday’s Best S&P Futures Turning Points: Neither trade triggered and the levels remain on the chart.
Today’s Best S&P Futures Turning Points (consider wider stops and less size in fast moving markets):
Buy 4430.00 stop 4425.75. Short 4598.50 stop 4604.25.
The World Index: (+100/-100) plummets from +64 to -36 with most major world markets modestly Bearish.
Catalysts: Jobless Claims, Philly Fed MFG Index, Import Prices @ 8:30. Industrial Production @ 9:15. Fed’s Williams @ 9:25. Housing Market Index @ 10:00. Fed’s Waller @ 10:30. Fed’s Barr @ 10:35.
Quick Tip: Tops & Bottoms
Here’s a great exercise in price pattern recognition that will help you with your entries and exits.
Scan any price chart in your favorite time intervals. Look at the swing highs and lows of the price movement. Mark the “V” bottoms and “round” tops. You’ll find that they occur more often than not.
How does this help? If you’re long and looking for an exit, the stall in momentum, the “round top” is a good signal the move may be ending. If you’re short and looking for an exit, a plunge into an area of demand/support is time to take some if not all the profit.
You’ll find other uses for this pattern too.
P.S. Feel free to share this newsletter with your trading buddies.